Vote Moves `Phantom` Closer To Opera House

September 9, 1990|By JACK ZINK, The Arts Column

What began as a sardonic little joke in the Broward Center for the Arts` boardroom several months ago almost became the turning point that could have killed a multimillion-dollar engagement of The Phantom of the Opera.

The joke was board member Karen Margulies` new townhouse, whose construction was being delayed while The Phantom`s negotiations dragged on. As each new crisis peaked in The Phantom timetable over the summer, Margulies compared it to her frustrations with her own contractor.

About a month ago, the joke became an issue. Though never central to The Phantom contract details, comparisons to the project`s increasingly critical construction timetable seemed to cause an erosion of confidence among some board members about whether all the pieces could fall into place.

There was plenty to consider, which Margulies herself outlined in a well- thought-out postmortem to the go-ahead decision.

A decision to cancel the show would have thrown the $52 million center`s first-year operating budget into chaos, wrecked a major national promoter`s show business syndicate and blown to pieces the center`s own emerging image as a first-class facility.

A TOUGH CALL

But it hasn`t been a one-sided issue. The deal approved by the center`s board on Thursday requires $5 million in guarantees, plus a multimillion- dollar backup insurance policy. The board believes that if the construction schedule lags any further, if the building isn`t ready for the hit musical, and especially if there are any irregularities, the center could wind up in just as bad a shape.

Yes, it was a tough call. But the situation is in large part one of the center`s own making over the past year. During that time, both the staff and the board itself made The Phantom an integral part of the project`s financial survival. And 80,000 tickets already have been sold.

No matter how worried board members are about the collision course between the show and the construction schedule, Thursday`s decision to move ahead with the booking was the only one that made sense. The consequences of a Phantom cancellation are inescapable. The side effects of a postponement due to construction delays are fluid, and there is a two-level backstop in place to cushion the blow.

In the simplest terms, the stake is $461,000 -- the amount of the deductible on a backup insurance policy, although board members didn`t all see it that way. The raw numbers have been obscured by concerns over both corporate and personal civil liability should lawsuits result if the proposed opening is postponed because of construction delays.

DIFFICULT BUT `DOABLE`

Although repeatedly told that a Feb. 1 delivery of the building remains difficult but ``doable,`` it became apparent in recent weeks that a majority of the board might decide to bail out of the contract talks rather than risk the possibility of being personally named in any suits arising from a postponement.

The ``townhouse syndrome`` appeared to be a significant factor in the emotional backdrop to the situation. As faith in the construction calendar evaporated, so did reliance upon the backup insurance policy itself.

The result, on Thursday, was a series of board attempts to gain assurance from consultants that the timetable can still work. The board, assisted by a written resolution from its legal counsel, made every conceivable effort to pass the liability buck to its experts and hired help before taking its own calculated risk.

Except for the townhouse issue and fears of individual liability in the event of lawsuits, the plain truth is that The Phantom vote has never been a simple show/no-show decision, with the odds all in favor of a go-ahead.

The show might be delayed a week, or two, or a month if construction lags. But barring natural disaster such as a hurricane, the center still will be ready for a portion of the engagement. Loss of the $461,000 insurance deductible would be offset by profits from the weeks that the musical does perform.

The center still will have a season and a hit with which to fill it. In show business, that`s as good a bet as anyone can expect.